Sc Form Estimated – Fill Out and Use

Filing requirements

You must file a declaration of Estimated Tax if you expect to owe an Income Tax liability of $100 or more with the filing of your SC1040, Individual Income Tax Return.

Use the Estimated Tax Worksheet to compute your Estimated Tax:

•If you are a resident of South Carolina, use your 2020 SC1040 as a basis for figuring your Estimated Tax.

•If you are a nonresident of South Carolina, use your 2020 SC1040 and Schedule NR as a basis to calculate the modified South Carolina taxable income to enter on line 3 of the Worksheet.

Exceptions to filing a declaration of Estimated Tax:

•Farmers and commercial fishermen whose gross income from farming or fishing for 2020 or 2021 is at least two-thirds (66.67%) of their total gross income from all sources. Instead of making four quarterly Estimated Tax payments, farmers and commercial fishermen may choose to pay all of their Estimated Tax by January 18, 2022 or file their 2021 SC1040 and pay the total tax due by March 1, 2022

•Individuals whose prior year tax liability was $0 for a full 12 months

•Nonresidents of South Carolina doing business in this state on a contract basis where the contract is more than $10,000 and tax is withheld at 2% from each contract payment

Declaration adjustment

If your Estimated Tax is substantially increased due to a change in income, dependents, or Income Tax withholding, file the adjusted declaration by the next payment due date. Use the SC1040ES to make the adjusted payment.

Complete the Adjusted Declaration Schedule, found in these instructions, to determine the amount to be paid. Use the corrected amounts of income and deductions from your federal information.

Payment due dates

1.If you file using a calendar year end of December 31, your Estimated Tax payments are due in four equal installments:

•1st quarter due April 15, 2021

•2nd quarter due June 15, 2021

•3rd quarter due September 15, 2021

•4th quarter due January 18, 2022

You can choose to pay all of your Estimated Tax on April 15, the due date of the first installment. Instead of making your last payment on January 18, you can choose to file your SC1040 by February 1 and pay the full balance of Income Tax due.

2.If you are not required to file on April 15 and:

•you meet your Estimated Tax filing requirement after April 1 and before June 1, your first Estimated Tax payment is due on June 15, 2021.

•you meet your Estimated Tax filing requirement after June 1 and before September 1, your first Estimated Tax payment is due on September 15, 2021.

•you meet your Estimated Tax filing requirement after September 1, your first Estimated Tax payment is due on January 18, 2022.

3.If you file on a fiscal tax year, your Estimated Tax payments are due on the 15th day of the fourth, sixth, and ninth months of the fiscal year and the first month of the following fiscal year.

Penalty for failure to file and pay Estimated Tax

You may be charged a penalty if:

•you do not pay enough Estimated Tax.

•you do not make your payments by the due date and for the required amount.

•you do not pay at least 90% of the total tax due.

A penalty will not be charged if your underpayment results from personal service income earned in another state and tax was withheld to the other state.

Generally you can avoid a penalty if you make timely Estimated Tax payments equal to 100% of the tax shown due on your SC1040 for the prior tax year. You must have filed a SC1040 for the prior tax year and it must have covered a 12-month year.

If the adjusted gross income on your prior year SC1040 was more than $150,000, the 100% rule is adjusted to 110% of last year's tax liability. Calculate adjusted gross income by using federal guidelines and making South Carolina adjustments.

Refer to the SC2210 at dor.sc.gov/forms for more information on computing the underpayment penalty.

Social Security Privacy Act Disclosure

It is mandatory that you provide your Social Security Number on this tax form if you are an individual taxpayer. 42 U.S.C. 405(c)(2)(C)(i) permits a state to use an individual's Social Security Number as means of identification in administration of any tax. SC Regulation 117-201 mandates that any person required to make a return to the SCDOR must provide identifying numbers, as prescribed, for securing proper identification. Your Social Security Number is used for identification purposes.

The Family Privacy Protection Act

Under the Family Privacy Protection Act, the collection of personal information from citizens by the SCDOR is limited to the information necessary for the SCDOR to fulfill its statutory duties. In most instances, once this information is collected by the SCDOR, it is protected by law from public disclosure. In those situations where public disclosure is not prohibited, the Family Privacy Protection Act prevents such information from being used by third parties for commercial solicitation purposes.